Jury finds Arm breached Qualcomm license but awards just $2
A jury in Delaware found that chip designer Arm broke a license deal with Qualcomm and hurt its business with Meta. But it awarded Qualcomm only $1 on each of those two claims. Arm won the other four claims, and a judge still has more to decide.
A federal jury in Delaware found Tuesday that chip designer Arm broke a licensing agreement with Qualcomm and interfered with Qualcomm's business relationship with Meta, CNBC, Tom's Hardware and Bloomberg Law reported.
But the jury awarded only nominal damages, Bloomberg Law said. Tom's Hardware reported that Arm was ordered to pay $1 on each of the two claims, for a total of $2.
Arm won the other four claims Qualcomm put to the jury, Tom's Hardware said. Bloomberg Law also reported that the jury sided with Arm on four counts.
The verdict followed a five-day trial, the outlets reported. It was the second trial in two years between the companies, CNBC said. Their relationship has soured since SoftBank took control of Arm in 2016 and Arm moved from licensing chip technology to selling chips of its own, CNBC said.
Arm's license lets Qualcomm design and sell its own processors that work with Arm's technology, Tom's Hardware said. Qualcomm accused Arm of holding back software patches and testing tools it needed. It also said Arm hurt its talks with Meta and other customers by threatening to end its license and leaking the notice to the media in October 2024, Tom's Hardware reported.
"We are pleased with the jury's decision today finding for Arm on four claims and awarding only one dollar in damages on each of Qualcomm's other two claims," an Arm spokesperson said, according to Tom's Hardware.
The fight is not over. U.S. District Judge Maryellen Noreika must still decide whether Arm's breach allows Qualcomm to stop paying royalties for five years, Tom's Hardware reported. That could cost Arm hundreds of millions or even billions of dollars, it said.
Qualcomm welcomed the verdict, Tom's Hardware said.
What we know: The jury found Arm breached the license but awarded Qualcomm $2.
What we don't: Whether the judge will let Qualcomm stop paying royalties.
Where outlets agree CNBC, Tom's Hardware and Bloomberg Law all report that the jury found Arm breached its license with Qualcomm and interfered with Qualcomm's relationship with Meta.
Where they differ The outlets cited here report the same key facts so far.